HD-DVD throws in the towel, Blu-Ray wins

http://www.joystiq.com/2008/02/16/toshiba-pulls-hd-dvd-support-blu-ray-wins/#comments

Ok folks, you\'ve been waiting.  We have an answer.

I don\'t really know how this effects us as consumers other than if you want hi-def movies you need to buy blu-ray.  Other than that, Sony and others in the BDA can sit back and watch the money roll in.

The competition was great up front; Sony adopted MPEG-4 AVC and VC-1 for optional video codecs, only because HD-DVD did it first.  Not to mention player prices had to be competitive.

I\'m just glad the better format won.

Good thing the market is more certain now.

Good thing the market is more certain now.

Yeah but competition is always good for pricing.  Let\'s hope that prices remain reasonable, i\'m actually hoping they\'ll lower, but they won\'t.

[Paul2]

the price is still reasonable, you can get a blu ray player for $400 nowadays compare to a year ago where they cost $1,000.

About half a year ago, the price of a blu ray player from sony is $500, then in Oct.  Sony dropped it down to $400.  And during the christmas holiday season, Sony temporarily dropped it down to $300 and goes back up to $400 after the holiday season.

If you are still interested in buying a blu ray player, get a ps3 or wait till another 6 months or by the end of the year where newer blu ray models should have more features and price should go lower, as low as $300.  Who knows, you maybe able to get it cheaper during the winter holiday season too.  As cheap as $200.

If you want a blu ray player costing under $400 now.  You are asking too much.  Expect crappier quality player for such a cheap player.

I can\'t wait to take advantage of all the HD-DVD clearances now

Yeah but competition is always good for pricing.  Let\'s hope that prices remain reasonable, i\'m actually hoping they\'ll lower, but they won\'t.

This is not allays the case although it sounds reasonable and it is generally applicable in general theory and in general perception. There are occasions such as natural oligopoly or natural monopoly where fewer "competitors" may actually lead to lower prices and higher volumes.

In the case of HD-DVD vs Blu Ray, the existence of two formats created uncertainty in the market which leads often to low sales, full library support did not exist for both thus created two separate library camps, etc. And in case of providing support for two formats simultaneously may actually be much less cost efficient (affects pricing). Furthermore it is not like the format is produced by one manufacturer only. Then there is the marketing perspective pointing towards the need to push the format for mass establishment and to persuade the consumer that Blu Ray is the new way to go despite the existence of DVD. And of course there is the interdependence between movie companies and the format providers, as well as the need to promote the players themselves. There are so many factors.

And in case of suspicion of deliberate price fixation by all blu ray manufacturers thats an illegal practice and may end up into fines.

The market needed one format for cost efficiency and better consumer satisfaction.

This makes me feel even better about my recent purchase of a PS3.

This is not allays the case although it sounds reasonable and it is generally applicable in general theory and in general perception. There are occasions such as natural oligopoly or natural monopoly where fewer "competitors" may actually lead to lower prices and higher volumes.

In the case of HD-DVD vs Blu Ray, the existence of two formats created uncertainty in the market which leads often to low sales, full library support did not exist for both thus created two separate library camps, etc. And in case of providing support for two formats simultaneously may actually be much less cost efficient (affects pricing). Furthermore it is not like the format is produced by one manufacturer only. Then there is the marketing perspective pointing towards the need to push the format for mass establishment and to persuade the consumer that Blu Ray is the new way to go despite the existence of DVD. And of course there is the interdependence between movie companies and the format providers, as well as the need to promote the players themselves. There are so many factors.

And in case of suspicion of deliberate price fixation by all blu ray manufacturers thats an illegal practice and may end up into fines.

The market needed one format for cost efficiency and better consumer satisfaction.

Your argument might hold some ground except that DVD prices have already dictated that the movie companies are going to set prices, and as long as the consumer buys them, they\'ll keep them there.

I\'m not saying that HD-DVD competition would lower the prices.  Just saying there is even less incentive now that all of the movie companies are using the same media.

Your argument might hold some ground except that DVD prices have already dictated that the movie companies are going to set prices, and as long as the consumer buys them, they\'ll keep them there.

I\'m not saying that HD-DVD competition would lower the prices. Just saying there is even less incentive now that all of the movie companies are using the same media.

 If I got it straight you saying that prices are set mostly by the movie companies and that having too camps  (half on HD-DVD and half on BR) would push for more price drops between the movie companies?

 If movie companies have the tendency to compete in different formats they have the same tendency in competing each other on the same format as well. HD-DVD, Blu Ray or one common format doesnt make much difference. The format wars is not of their concern since none of the two formats are a product of their own, only the media on the disk which they are competing at regardless of format. Also knowing that the specific industry finally adopts one format only, it is strategically wise not to start competing in prices with the aim to help one format survive over another, since that lower price may become the norm when one format is settled, generating lower future revenues as a result. And in case of two formats and two camps existing it will never happen. They all realize this is bad business (and very disadvantageous for the consumer)  compared to supporting one format. Doing that means reducing prices and fragmenting their sales too much which is irrational. Lowering prices aims to increase market share or profits which was impossible with two formats creating uncertainty in the market. This format competition was temporary in nature with not high tendency by movie companies to reduce prices because of that format competition. They prefer to observe and automatically follow only one format which they believe can sell and promote their movies better.

No, I\'m saying that the format will pretty much have a set price that everyone in the industry is going to agree upon and that will be that.  When the price of production of Blu-ray goes down, their profit margin will just go up.  Don\'t expect the consumer to win because HD-DVD is done.  Its just as dumb as the logic that HD-DVD would bring prices down.  It might affect how much the actual players costs, but the discs are going to be price gouged no matter what.

No, I\'m saying that the format will pretty much have a set price that everyone in the industry is going to agree upon and that will be that.  When the price of production of Blu-ray goes down, their profit margin will just go up.  Don\'t expect the consumer to win because HD-DVD is done.  Its just as dumb as the logic that HD-DVD would bring prices down.  It might affect how much the actual players costs, but the discs are going to be price gouged no matter what.

What you said I believe has been already addressed in both of my posts. You probably didnt read carefully

What you said I believe has been already addressed in both of my posts. You probably didnt read carefully

You don\'t even half way comprehend what he is trying to say, so don\'t try and pass it off as tho you already "addressed" the issues.

He is saying that without another format, Blu Ray disc prices are going to be expensive and he is right. They are not going to lower prices to match with DVD\'s, because DVD\'s have a standard $15 dollar price tag. Quite simply, due to production and the fact it\'s a "hi-def" format, we won\'t see those prices. With another format, like HD DVD, we most likely would of seen slightly cheaper prices due to the fact they had a direct competitor.

And before someone links to a few $15 dollar Blu Ray, that does not account for the majority and the majority is what counts.

[GmanJoe]

It\'ll come down in prices just like the way DVDs did. They, too, cost $30 back in 1998. By 2000, Costco was selling them for $18 or less.

It\'ll come down in prices just like the way DVDs did. They, too, cost $30 back in 1998. By 2000, Costco was selling them for $18 or less.

LIC doesnt get it.